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Extended Warranty
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Extended warranty for cars is not a mandatory thing that you need for your car, it is something that you can choose to benefit from if you think it will be worth the investment. The question arises though, under what circumstances should you consider buying an extended car warranty? Well, I can think of a couple of good reasons for which you should invest in an auto warranty plan.

The very first reason why you should think about getting extended warranty for cars is if you have a more expensive car. Usually, sports cars and super cars that are very expensive tend to have all sorts of problems every once in a while and if you can get a good deal on an extended warranty, you could actually save money. For example, European cars that cost more than 50.000 dollars are a good idea to get an extended warranty for. When they are only a couple of years old, everything is fine, but as the miles start building up you will see that every now and then you need to change a couple of parts which usually are not cheap.

It really depends on what type of car you own. As I mentioned above, you can get warranty for any car these days, and it can actually help you save money, especially on those vehicles which are known to be not very reliable. If you know that your car breaks down a lot and if you add up all the service fees and parts that you have to buy in an year for that car and the amount is higher than the projected amount you would have to pay for the extended warranty for cars, you should absolutely go with it.

For more information about auto warranties and to compare quotes for free visit extended vehicle warranty.

Saving up to 60% on used vehicle warranty has never been easier.

How To Get A New Car Extended Warranty At A Rock-Bottom Price

Each and every time you buy a new car, truck, mini-van or suv, the dealership is going to ask you purchase an extended warranty.

Some buyers are interested - many are not. For those that are, they're in lousy position because they don't know what an extended warranty actually costs. The Dealer presents a figure they want you to pay....and you have no base-line figures to compare it to.

Wouldn't it be great if you knew what Dealerships paid for the Extended Warranties they sell....and what they're going to charge for them?

Well, now you can.

It's really very simple. Any new car (or truck) extended Warranty cost is calculated as a percentage of the price - regardless of who makes the car, van, truck or SUV you're considering. Here's how this works.

Let's say you're looking at a new Truck and considering the most common extended warranty - 5 years and 100,000 miles of coverage. The MSRP (the Sticker in the window) says $32,000. The Manufacturer of that truck sells the Warranty to each and every Dealer for 2.3% - 3.5% of the MSRP.

So, for this particular truck we're discussing, the warranty will cost the Dealer between $800 and $1,120 - or 2.3% and 3.5%. That's what he or she will pay the Truck maker.

The Dealer then turns around and adds his or her profit when selling it to you.

In most cases, they will sell the Warranty to you for 60% more than what they paid for it.

So, for this particular truck, the Dealer will sell the extended warranty for between $1,280 and $1,760 (Cost plus 60%)....when it only costs them somewhere between $800 and $1,120.

Here's the formula to use the next time you're considering a Dealers Extended Warranty:

- Total MSRP X 2.3% & Total MSRP X 3.5%. Somewhere in between is the actual Dealer cost.
- Total MSRP X 4% & Total MSRP X 5.5%. Somewhere in between is what the Dealer will want you to pay.

So, you know their Cost. And you know the profit they're wanting.

My suggestion is this - when you're presented with the Dealers asking price, tell them you'll pay no more than 10% over cost. That's a far cry from the 60% profit they want - but a much better deal for you.

Make sure you use these simple calculations when you're negotiating the price of a Manufacturers Extended Car Warranty. It should save you a considerable amount of money.

About the Author

Tom O'Leary is an Automotive Portfolio Analyst based in Cincinnati, Ohio and Publisher of http://www.mynewcarpurchase.com, a consumer web site focusing on buying a new/used car,
extended car warranty
ideas and car insurance strategies.

When warranty expires, is there extended warranty coverage for newly installed parts?

Hello. I bought a truck from a dealership in New York. During the warranty period it became apparant that it needs a new transmission. When the warranty runs out, is there any sort of extended warranty that covers the newly installed parts?

That depends on the details of repair which you did not include, such as the source of the replacement transmission which was probably not "new" but remanufactured. It depends on the policy of the vehicle manufacturer , which you did not disclose and the policy of the supplier of the transmission, which you also did not disclose.

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